(Table: Revenues and Costs for Two Industries) Suppose That the Table

Multiple Choice

(Table: Revenues and Costs for Two Industries) Suppose that the table gives payments to labor, land, and capital in the manufacturing and agriculture sectors. Now, suppose that the price of manufacturing goods increases by 10% (P_M) , and wages increase by 5%. What would we expect to take place?

A) More output will be produced in the agriculture sector.
B) Labor will migrate to the agriculture sector.
C) More output will be produced in the manufacturing sector.
D) The rental rate on capital will decline.